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Post by PandaWatch on Aug 27, 2022 8:16:00 GMT -6
I have questions, but I don’t even know what they are at this point. I am fortunate enough not to have had to take out loans, but my H has…a lot. He doesn’t even remember what he has or anything because he’d assumed he’d be paying on it forever. The payment just goes through automatically every month. I don’t know anything about the loan world, but we have to figure this out. It would be huge if some of his loans were forgiven. the best place to start is studentaid.gov. He can create an account and see if he has any of the eligible loans.
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Post by coffeecake on Aug 27, 2022 9:21:28 GMT -6
I have questions, but I don’t even know what they are at this point. I am fortunate enough not to have had to take out loans, but my H has…a lot. He doesn’t even remember what he has or anything because he’d assumed he’d be paying on it forever. The payment just goes through automatically every month. I don’t know anything about the loan world, but we have to figure this out. It would be huge if some of his loans were forgiven. the best place to start is studentaid.gov. He can create an account and see if he has any of the eligible loans. I’ll have him do this today. Thank you!
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mc13
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Post by mc13 on Aug 29, 2022 11:29:36 GMT -6
Thanks for all this good info! I just updated my info on student aid.gov to take a look. I received the Pell grant in undergrad and have a $3200 FFELP Consolidation loan and $4k Dept. Ed. loan (the Dept. Ed one is currently 0% but the FFELP is not). So technically only the $4k would qualify correct? I just read this: www.cnbc.com/2022/08/29/how-more-ffel-borrowers-may-qualify-for-student-loan-forgiveness.html and thecollegeinvestor.com/37756/ffelp-loans/ And it says "Consolidating FFELP loans into a Federal Direct Consolidation Loan will make the loans eligible for the payment pause and interest waiver." But will that screw anything else up or should I just keep paying on that one? The monthly payment is about $100/month, so totally manageable.
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Post by PandaWatch on Aug 29, 2022 11:58:38 GMT -6
mc13*This is not financial advice* I personally would not consolidate my FFELP loan into a Direct Loan. First, it will take months. Second, you could lose borrower benefits like progress towards IDR and an interest rate discount some servicers offer for a certain # of ontome payments. And third, it could potentially increase your interest rate. Also, ED wants to include FFELP loans in forgiveness, they’re just trying to figure how best to do that.
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sterling
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Post by sterling on Aug 29, 2022 12:03:57 GMT -6
Just chiming in to say how sad I am that i refinanced my loans to a private borrower because it was a better deal than the federal government in terms of interest rates. It’s so depressing to not be eligible after trying desperately to be responsible.
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Sundae
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Post by Sundae on Aug 29, 2022 12:19:19 GMT -6
mc13 *This is not financial advice* I personally would not consolidate my FFELP loan into a Direct Loan. First, it will take months. Second, you could lose borrower benefits like progress towards IDR and an interest rate discount some servicers offer for a certain # of ontome payments. And third, it could potentially increase your interest rate. Also, ED wants to include FFELP loans in forgiveness, they’re just trying to figure how best to do that. Yup. I was fixing to have my H roll the 50K in ffelp over to direct to do the interest pause thing, but then they said they were figuring it out... So now we're going to hold off and see how they figure things out. And hope they do it in our favor so we can make those qualify for the income based repayment so the interest will stop adding on at least while we're paying.
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Post by PandaWatch on Aug 29, 2022 12:29:07 GMT -6
mc13 *This is not financial advice* I personally would not consolidate my FFELP loan into a Direct Loan. First, it will take months. Second, you could lose borrower benefits like progress towards IDR and an interest rate discount some servicers offer for a certain # of ontome payments. And third, it could potentially increase your interest rate. Also, ED wants to include FFELP loans in forgiveness, they’re just trying to figure how best to do that. Yup. I was fixing to have my H roll the 50K in ffelp over to direct to do the interest pause thing, but then they said they were figuring it out... So now we're going to hold off and see how they figure things out. And hope they do it in our favor so we can make those qualify for the income based repayment so the interest will stop adding on at least while we're paying. Only Direct Loans will be eligible for the new IDR plan, and only those taken out for undergrad.
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Post by PandaWatch on Aug 29, 2022 12:36:34 GMT -6
Yup. I was fixing to have my H roll the 50K in ffelp over to direct to do the interest pause thing, but then they said they were figuring it out... So now we're going to hold off and see how they figure things out. And hope they do it in our favor so we can make those qualify for the income based repayment so the interest will stop adding on at least while we're paying. Only Direct Loans will be eligible for the new IDR plan, and only those taken out for undergrad. I should add: this is a proposal. But ED cannot change that it applies only to Direct Loans because the underlying law they are using to create a new plan though regulation limits it to Direct Loans. It CAN, however, decide whether to allow graduate borrowers to enroll. ED has chosen not to do that. But these proposed regulations will come out in a few weeks, and then the public will have 30 days to submit public comments. If ED hearS from enough people that graduate loans should be included, they might change their mind.
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mc13
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Post by mc13 on Aug 29, 2022 12:37:49 GMT -6
mc13 *This is not financial advice* I personally would not consolidate my FFELP loan into a Direct Loan. First, it will take months. Second, you could lose borrower benefits like progress towards IDR and an interest rate discount some servicers offer for a certain # of ontome payments. And third, it could potentially increase your interest rate. Also, ED wants to include FFELP loans in forgiveness, they’re just trying to figure how best to do that. Yup. I was fixing to have my H roll the 50K in ffelp over to direct to do the interest pause thing, but then they said they were figuring it out... So now we're going to hold off and see how they figure things out. And hope they do it in our favor so we can make those qualify for the income based repayment so the interest will stop adding on at least while we're paying. Thanks so much to your both! Totally makes sense. I’ll hold off and see if I’m lucky. It sure would be nice to have this last bit forgiven.
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lemons
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Post by lemons on Aug 29, 2022 13:26:48 GMT -6
I think I’m reading that you could qualify based on 2020 OR 2021 adjusted gross income? So if we were under the cap on 2020 (pandemic furlough) but not in 2021 I could still qualify for forgiveness? Thoughts/insights?
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Post by blurnette989 on Aug 29, 2022 14:02:23 GMT -6
Yup. I was fixing to have my H roll the 50K in ffelp over to direct to do the interest pause thing, but then they said they were figuring it out... So now we're going to hold off and see how they figure things out. And hope they do it in our favor so we can make those qualify for the income based repayment so the interest will stop adding on at least while we're paying. Only Direct Loans will be eligible for the new IDR plan, and only those taken out for undergrad. wait what? So no grad loans included as of now???? I did not read it this way before so this is depressing. I thought it was only 5% payment cap for undergrads. Fuck.
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mc13
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Post by mc13 on Aug 29, 2022 14:09:08 GMT -6
I think I’m reading that you could qualify based on 2020 OR 2021 adjusted gross income? So if we were under the cap on 2020 (pandemic furlough) but not in 2021 I could still qualify for forgiveness? Thoughts/insights? Also curious. I was still a SAHM with no income in 2020 and went back to work in 2021 that put us over the joint limit.
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Sundae
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Post by Sundae on Aug 29, 2022 14:09:35 GMT -6
Only Direct Loans will be eligible for the new IDR plan, and only those taken out for undergrad. I should add: this is a proposal. But ED cannot change that it applies only to Direct Loans because the underlying law they are using to create a new plan though regulation limits it to Direct Loans. It CAN, however, decide whether to allow graduate borrowers to enroll. ED has chosen not to do that. But these proposed regulations will come out in a few weeks, and then the public will have 30 days to submit public comments. If ED hearS from enough people that graduate loans should be included, they might change their mind. These are his undergrad loans, thankfully, but they are the stupid kind that everyone is getting screwed over on from 2000-2004. So I guess I'll have him start the process of having them changed over to direct loans.
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Post by PandaWatch on Aug 29, 2022 14:29:38 GMT -6
I should add: this is a proposal. But ED cannot change that it applies only to Direct Loans because the underlying law they are using to create a new plan though regulation limits it to Direct Loans. It CAN, however, decide whether to allow graduate borrowers to enroll. ED has chosen not to do that. But these proposed regulations will come out in a few weeks, and then the public will have 30 days to submit public comments. If ED hearS from enough people that graduate loans should be included, they might change their mind. These are his undergrad loans, thankfully, but they are the stupid kind that everyone is getting screwed over on from 2000-2004. So I guess I'll have him start the process of having them changed over to direct loans. *Not financial advice* In this case, I would.
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Post by PandaWatch on Aug 29, 2022 14:31:30 GMT -6
I think I’m reading that you could qualify based on 2020 OR 2021 adjusted gross income? So if we were under the cap on 2020 (pandemic furlough) but not in 2021 I could still qualify for forgiveness? Thoughts/insights? This is how I understand it as well. The administration is using legal authority based on an emergency (I.e., COVID), so I think the idea is if you made less than the threshold in EITHER year, you’re eligible.
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lemons
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Post by lemons on Aug 29, 2022 14:45:14 GMT -6
I think I’m reading that you could qualify based on 2020 OR 2021 adjusted gross income? So if we were under the cap on 2020 (pandemic furlough) but not in 2021 I could still qualify for forgiveness? Thoughts/insights? This is how I understand it as well. The administration is using legal authority based on an emergency (I.e., COVID), so I think the idea is if you made less than the threshold in EITHER year, you’re eligible. Thanks. I am trying not to get excited about it until I can confirm it because I also had a Pell Grant but I will remain hopeful.
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Sundae
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Post by Sundae on Aug 29, 2022 15:08:54 GMT -6
These are his undergrad loans, thankfully, but they are the stupid kind that everyone is getting screwed over on from 2000-2004. So I guess I'll have him start the process of having them changed over to direct loans. *Not financial advice* In this case, I would. Thank you! I just did a simulator, and it looks like we can slap these bitches down in the next two and a half years without interest this way, still not even paying 1/2 of what we were on his law school shit. Let's go. We may be almost done when our oldest picks which school she's attending and needs to send in a deposit. 🤣🤣😅
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piratecat
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Post by piratecat on Aug 29, 2022 15:13:15 GMT -6
Just chiming in to say how sad I am that i refinanced my loans to a private borrower because it was a better deal than the federal government in terms of interest rates. It’s so depressing to not be eligible after trying desperately to be responsible. Right? We really should have seen this pandemic coming decades later, sterling!
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piratecat
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Post by piratecat on Aug 29, 2022 15:27:57 GMT -6
I should add: this is a proposal. But ED cannot change that it applies only to Direct Loans because the underlying law they are using to create a new plan though regulation limits it to Direct Loans. It CAN, however, decide whether to allow graduate borrowers to enroll. ED has chosen not to do that. But these proposed regulations will come out in a few weeks, and then the public will have 30 days to submit public comments. If ED hearS from enough people that graduate loans should be included, they might change their mind. These are his undergrad loans, thankfully, but they are the stupid kind that everyone is getting screwed over on from 2000-2004. So I guess I'll have him start the process of having them changed over to direct loans. What does this mean? I have FFELP loans from 2000-2005. How do I know if they’re the stupid kind? I feel so clueless and I’ve had student loans for almost 20 years.
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piratecat
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Post by piratecat on Aug 29, 2022 15:28:00 GMT -6
I should add: this is a proposal. But ED cannot change that it applies only to Direct Loans because the underlying law they are using to create a new plan though regulation limits it to Direct Loans. It CAN, however, decide whether to allow graduate borrowers to enroll. ED has chosen not to do that. But these proposed regulations will come out in a few weeks, and then the public will have 30 days to submit public comments. If ED hearS from enough people that graduate loans should be included, they might change their mind. These are his undergrad loans, thankfully, but they are the stupid kind that everyone is getting screwed over on from 2000-2004. So I guess I'll have him start the process of having them changed over to direct loans. What does this mean? I have FFELP loans from 2000-2005. How do I know if they’re the stupid kind? I feel so clueless and I’ve had student loans for almost 20 years.
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Post by mrsweasley on Aug 29, 2022 15:33:14 GMT -6
I'm so excited for all of you having loans reduced or wiped out
I am also very hopeful they'll have something going forward, especially with my oldest starting college this year.
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Sundae
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Post by Sundae on Aug 29, 2022 16:33:13 GMT -6
These are his undergrad loans, thankfully, but they are the stupid kind that everyone is getting screwed over on from 2000-2004. So I guess I'll have him start the process of having them changed over to direct loans. What does this mean? I have FFELP loans from 2000-2005. How do I know if they’re the stupid kind? I feel so clueless and I’ve had student loans for almost 20 years. They weren't paused, and you still are paying interest? They're the stupid kind. They're federal loans that were issued through private companies. www.cnbc.com/2022/08/29/how-more-ffel-borrowers-may-qualify-for-student-loan-forgiveness.htmlMy federal loans are owned by Navient. It was someone else before. And someone else before that. They've been transferred around a ton.
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beepers
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Post by beepers on Aug 29, 2022 17:06:30 GMT -6
Just chiming in to say how sad I am that i refinanced my loans to a private borrower because it was a better deal than the federal government in terms of interest rates. It’s so depressing to not be eligible after trying desperately to be responsible. SAAAMMME plus I switched to night shift for almost 2 years to pay those consolidated loans off. Like 60k worth. I mean, had I not done that my overall life would be really different (not necessarily better) but the money part kinda sucks.
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RajahMD
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Post by RajahMD on Aug 29, 2022 17:12:46 GMT -6
Only Direct Loans will be eligible for the new IDR plan, and only those taken out for undergrad. wait what? So no grad loans included as of now???? I did not read it this way before so this is depressing. I thought it was only 5% payment cap for undergrads. Fuck. Hi friend, I brought booze to this sad party. I think we're gonna need it. God I really hope they change their minds.
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piratecat
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Post by piratecat on Aug 29, 2022 17:19:17 GMT -6
What does this mean? I have FFELP loans from 2000-2005. How do I know if they’re the stupid kind? I feel so clueless and I’ve had student loans for almost 20 years. They weren't paused, and you still are paying interest? They're the stupid kind. They're federal loans that were issued through private companies. www.cnbc.com/2022/08/29/how-more-ffel-borrowers-may-qualify-for-student-loan-forgiveness.htmlMy federal loans are owned by Navient. It was someone else before. And someone else before that. They've been transferred around a ton. Oh yea, that’s what I have. Through Navient. Sallie Mae before that.
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Post by blurnette989 on Aug 30, 2022 0:19:22 GMT -6
wait what? So no grad loans included as of now???? I did not read it this way before so this is depressing. I thought it was only 5% payment cap for undergrads. Fuck. Hi friend, I brought booze to this sad party. I think we're gonna need it. God I really hope they change their minds. It's really fucking dumb especially with an income cap. Because if EVEN WITH A GRAD DEGREE i make less than your income cap 12 years after graduating with said degree, then that degree hasnt made it easier to pay my loans back. Like just wtf. I am going to struggle to keep it together in my public comments.
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RajahMD
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Post by RajahMD on Aug 30, 2022 6:19:16 GMT -6
Hi friend, I brought booze to this sad party. I think we're gonna need it. God I really hope they change their minds. It's really fucking dumb especially with an income cap. Because if EVEN WITH A GRAD DEGREE i make less than your income cap 12 years after graduating with said degree, then that degree hasnt made it easier to pay my loans back. Like just wtf. I am going to struggle to keep it together in my public comments. I had that exact same thought. It's like they assume all lawyers and docs make mega bank, which is so not true. Not to mention PhDs, who often get paid peanuts, or other scientific fields that basically require a masters degree but don't pay as much as medical fields (forensic science comes to mind).
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Post by PandaWatch on Aug 30, 2022 10:54:40 GMT -6
Hi friend, I brought booze to this sad party. I think we're gonna need it. God I really hope they change their minds. It's really fucking dumb especially with an income cap. Because if EVEN WITH A GRAD DEGREE i make less than your income cap 12 years after graduating with said degree, then that degree hasnt made it easier to pay my loans back. Like just wtf. I am going to struggle to keep it together in my public comments. I think you’re conflating two things. The income cap applies to the $10k loan forgiveness. Graduate loans ARE eligible for that. Under the new IDR plan, graduate loans are NOT eligible.
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Post by blurnette989 on Aug 30, 2022 12:42:11 GMT -6
It's really fucking dumb especially with an income cap. Because if EVEN WITH A GRAD DEGREE i make less than your income cap 12 years after graduating with said degree, then that degree hasnt made it easier to pay my loans back. Like just wtf. I am going to struggle to keep it together in my public comments. I think you’re conflating two things. The income cap applies to the $10k loan forgiveness. Graduate loans ARE eligible for that. Under the new IDR plan, graduate loans are NOT eligible. Got it. Still fucked by interest. Also @pandawatxh apologies as that came across harsh. Obviously not upset at you just the extremely frustrating misconceptions people have about graduate loans.
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Post by doublestuf on Aug 30, 2022 18:31:16 GMT -6
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